EUR/USD daily outlook

Recommended trades: Long in the 1.4615 area, stop at 1.4585, objectives at and above 1.4665. Extended objectives may aim towards 1.4700 if 1.4660 will be tested and it won't hold.

The Euro continued its recovery and climbed higher, breaking the resistance formed in the middle of the 1.45 area and established support near the 1.4600 mark. Support is now seen at 1.4590 backed by 1.4560, 1.4515 and 1.4475. Resistance starts at 1.4640 followed by 1.4660, 1.4700 and 1.4740. Bullish momentum is now seen on the daily charts and the hourly studies are positive as well. The Euro recovery is likely to continue, the pair aiming towards the mid-term resistance at 1.4740. If the said resistance will be broken, then we will start to look higher once again focusing on the all-time highs in the 1.49 area. On the other side, on a potential retracement the Euro will face support at 1.4560 which is also the 50% fib retracement of yesterday's upward move from 1.4475 to 1.4640. Although the upside is favored nowadays we must be careful on potential retracements aiming towards the first two support levels at 1.4590 and 1.4560. Current quote is 1.4635 @07:12 GMT Read more...

FXDREAM EUR/USD
Date: Thu, 27 December 2007 13:10:05
Resistance levels: 1.4550/1.4600/1.4640
Support levels: 1.4520/1.4470/1.4410
Merry Christmas!!!!
EUR/USD has bounced further towards 1.4600 over the last trading session on thin volumes as US Durable Goods Orders numbers came out much below expectations Further upmove towards 1.4640 is likely to be seen over today and tomorrow First immediate Resistance comes at 1.4600. On downside below 1.4470 turns price back towards 1.4410 in mid term First Support comes in the 1.4520-15 area
Strategy-neutral.

FXDREAM GBP/USD
Date: Thu, 27 December 2007 13:10:04
Resistance levels: 1.9950/2.0000/2.0070
Support levels: 1.9850/1.9750/1.9700
GBP/USD has broken beyond 1.99 first Resistance earlier today on thin volumes The break above 1..99 first strong Resistance may reverse price towards 2.0070 over today and tomorrow and 2.0280 in longer term First Resistance comes around 1.9950 On the other side, a break below 1.9850-45 area is needed for resuming the dontrend towads 1.9750 bottom
Strategy-neutral.

FXDREAM USD/JPY
Date: Thu, 27 December 2007 13:10:03
Resistance levels: 114.80/115.30/115.70
Support levels: 114.00/113.20/112.80
USD/JPY has bounced to 114.70 high earlier today before US data Release No change in our view. The uptrend remains intact for test towards 114.80 and 115.70 in longer term. On the other side, first Support comes at 114.00 Below eases price back towards 113.20 later today. The key one remains at 112.80.
Strategy-neutral.

FXDREAM USD/CHF
Date: Thu, 27 December 2007 13:10:02
Resistance levels: 1.1500/1.1580/1.1640
Support levels: 1.1400/1.1370/1.1300
USD/CHF has dropped below 1.1500-1490 previous Support area earlier today after disappointing US data The break below 1.1500 reverses the bias for pullback towards 1.1370 stronger one in mid and longer term. First target is at 1.1400 On the upside, a break above 1.1490-1.1500 region again is needed for reversal towards 1.1580 and higher.
Strategy-neutral.

FXDREAM EUR/JPY
Date: Thu, 27 December 2007 13:10:02
Resistance levels: 166.50/167.30/167.60
Support levels: 165.40/165.00/164.10
The Cross has hold above 165.40 first important Support over the last trading session bouncing towards 166.50 next target In mid and longer term further upmove towards 167.30 and 167.60 is not ruled out.First Resistance comes around 166.50 On downside, below 165.40 first crucial Support resumes the downtrend towards 164.00 Support
Strategy-neutral Read more...

Forex Market Outlook on Majors

INTRA-DAY GBP/USD OUTLOOK: 1.9887

Updating time :27 Dec 2007 05:56 GMT

As cable has risen after finding renewed buying
abv 1.9850 (now sup), suggesting the rise fm this
week's low at 1.9753 to retrace recent decline wud
extend to 1.9905/10 n possibly twds 1.9928 but over
bought condition shud cap upside below 1.9950.

Buy on dips with stop as indicated n only below
1.9828 wud abort intra-day bullishness...

Range Forecast
1.9870 / 1.9895

Resistance/Support
R: 1.9895/1.9928/1.9985
S: 1.9850/1.9828/1.9805 Read more...

USD/JPY Daily Outlook

INTRA-DAY USD/JPY OUTLOOK: 114.09

Updating time :23 Dec 2007 22:21 GMT


Friday's rally abv 113.60 (prev. res, now sup)
confirms recent uptrend fm 107.22 has 'finally' re-
sumed n further gain to 114.40/50 is now envisaged
after minor consolidation but near term o/bot condi
tion shud cap price below 114.75/80.

Incline to buy dlr on dips as only below 113.60
wud signal a temp. top is made n risk 113.27...

Range Forecast
113.90 / 114.21

Resistance/Support
R: 114.21/114.50/114.79
S: 113.60/113.27/112.74 Read more...

Forex Market Outlook on Majors

INTRA-DAY GBP/USD OUTLOOK: 1.9834

Updating time :24 Dec 2007 04:30 GMT

As cable has recovered after testing good sup
at 1.9810 in Asia, further consolidation abv there
is seen with mild upside bias n marginal gain abv
1.9845 (Aust.) can't be ruled out but 1.9895 shud
remain intact n yield another retreat.

Sell on further rise n only below 1.9810 wud
confirm decline has finally resumed, 1.9770/80...

Range Forecast
1.9820 / 1.9845

Resistance/Support
R: 1.9845/1.9895/1.9928
S: 1.9810/1.9748/1.9660 Read more...

EUR/USD Daily Outlook

INTRA-DAY EUR/USD OUTLOOK: 1.4384

Updating time :24 Dec 2007 04:28 GMT

Although euro has moved higher fm 1.4368 (Aust.)
due to cross buying n consolidation with mild up-
side bias is seen, abv 1.4411 is needed to extend
the corrective rise fm last week's low at 1.4310
twds prev. res at 1.4436 later.

Buy on dips with stop below 1.4348 (Friday's NY
low), break risks 1.4325/30 but 1.4310 shud hold...

Range Forecast
1.4370 / 1.4395

Resistance/Support
R: 1.4411/1.4436/1.4482
S: 1.4368/1.4348/1.4310 Read more...

Daily Forecast by FXDream

FXDREAM EUR/USD
Date: Fri, 21 December 2007 13:10:05
Resistance levels: 1.4400/1.4450/1.4520
Support levels: 1.4350/1.4310/1.4270
Happy Christmas!!!
EUR/USD has held above 1.4350 first Suport earlier today on thin volumes before Christmas US Core PCE Index came out the same as consensus at 0.2% The bias remains bearish as long as price is below 1.4450 for retest of .4310 lows and even lower towards 1.4270 in mid term First minor Support comes at 1.4350. On the other side, a break above 1.4450 is needed for reversal back towards 1.4520 and 1.4580 .In short term as long as price is above 1.4350 further recovery to 1.4450 is not ruled out later today
Strategy-neutral.

FXDREAM GBP/USD
Date: Fri, 21 December 2007 13:10:04
Resistance levels: 1.9900/1.9950/2.0000/2.0070
Support levels: 1.9810/1.9740/1.9700
GBP/USD has remaimed below 1.9900 first Resistance over the last trading sessions despite stronger than expected UK Retail Sales numbers We have booked 60 pip profit for the first part and 120 pip for the rest of our Short position. The bias remains bearish for further downmove towards 1.9810 yesterday bottom and even 1.9740 in longer term First immediate Support comes at 1.9810 On the other side, a break above 2.0070 strong Resistance is needed for reversal towards 2.0200 and 2.0280 in longer term First Resistance comes around 1..99
Holding GBP/USD Short at 1.9950,Stop-loss-1.9950( up from 1.9990) ,Take profit-1.9890( 1.9830)

FXDREAM USD/JPY
Date: Fri, 21 December 2007 13:10:03
Resistance levels: 113.60/114.00/114.80
Support levels: 112.80/112.20/111.50
USD/JPY has bounced towards 113.50-60 up boundery of the 112.80-113.50-60 previous high range Below 112.80 first immediate Support may cause pullback down to 112.20 and even 111.50 bottom in longer term On the other side, further upmove towards 114.00 over the next trading sessions and even 115.70 in longer term may be seen First Resistance comes in the 113.50-60 region
Strategy-neutral.

FXDREAM USD/CHF
Date: Fri, 21 December 2007 13:10:02
Resistance levels: 1.1575/1.1600/1.1640
Support levels: 1.1500/1.1450/1.1370
USD/CHF has made pullback towards 1.1500 Support in Asia No change in our view. The bias remains positive for further upmove towards 1.1600 and 1.1650 in mid term and longer term First Resistance comes around 1.1580 yesterday highs . On the other side, first important Support comes at 1.1500 Below reverses the bias for pullback towards 1.1370 stronger one in mid and longer term. We prefer to stay aside for now
Strategy-neutral.

FXDREAM EUR/JPY
Date: Fri, 21 December 2007 13:10:01
Resistance levels: 163.50/164.00/164.60
Support levels: 162.40/161.70/161.20
The Cross has risen further towards 163.50 important Resistance level earlier today No change in our view. On the upside, a break above 163.50 first Resistance again is needed for reversal towards 164.00 and 165.30 previous high in longer term .First Resistance comes around 163.50 now On downside, below 162.40 resumes the downtrend towards 161.70 yesterday lows and 161.20 bottom in longer term
Strategy-neutral Read more...

Daily Market Comments

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Economic Indicator Forecast

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FXDREAM EUR/USD
Date: Fri, 14 December 2007 13:10:05
Resistance levels: 1.4520/1.4580/1.4670
Support levels: 1.4430/1.4370/1.4320
EUR/USD has dropped sharply down below 1.4520-15 our target area earlier today as US Core Consumer Price Index came out better than expected .The bias is bearish with next target at 1.4370 maybe next week and even 1.4300 On the other side, first important Resistance comes at 1.4520, however , a break abive 1.4580 is needed for reversal back towards 1.4670.
Strategy-neutral.

FXDREAM GBP/USD
Date: Fri, 14 December 2007 13:10:04
Resistance levels: 2.0280/2.0350/2.0450
Support levels: 2.0180/2.0100/2.000
GBP/USD has dropped sharply down to 2.0180 key Support and previous bottom after stronger than expected US CPI earlier Below 2.0180 opens territory for test of 2.00 maybe next week. Next down target comes at 2.0100. On the other side, first Resistance comes at 2.0280. However, a break above 2.0350 is needed for upmove towards 2.0450 and higher
Strategy-neutral

FXDREAM USD/JPY
Date: Fri, 14 December 2007 13:10:03
Resistance levels: 113.40/114.00/114.80
Support levels: 112.50/112.00/111.50
USD/JPY has found important Support in the 111.50-45 area yesterday and rebounded for test of 113.40 target over the last trading sessions as it was suggested in our previous reports . The bias remains bullish for test of 114.00 and 114.80 over the next trading sessions next week. First immediate Resistance comes around 113.40 highs On the other side, first important Support comes around 112.50 ahead of 111.50-45 key one
Strategy-neutral.

FXDREAM USD/CHF
Date: Fri, 14 December 2007 13:10:02
Resistance levels: 1.1540/1.1600/1.1650
Support levels: 1.1450/1.1370/1.1300
USD/CHF has bounced further to 1.1540 ( beyond our next target at 1.1480) earlier today as it was suggested after stronger than expected US CPI We have booked 55 pip profit over the first part and 110 pip for the rest of our Long position The bias remains positive for further upmove towards 1.1600 and 1.1650 next week First Resistance comes at 1.1540 . On the other side, first Support comes at 1.1450 now ahead of 1.1370 stronger one
Holding USD/CHF Long at 1.1370,Stop-loss-1.1370( up from 1.1330) ,Take profit-1.1425( 1.1480)

FXDREAM EUR/JPY
Date: Fri, 14 December 2007 13:10:01
Resistance levels: 164.00/164.60/165.30
Support levels: 163.20/163.00/162.40
The Cross has fallen down to 163.25-20 area Support earlier today as it was suggested in our previous report . Below 163.20 reverses the bias towards 162.40 and 162.00 next week. On the upside, a break above 164.00 first Resistance again is needed for reversal towards 165.30 previous high.
Strategy-neutral Read more...

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FXDREAM EUR/USD
Date: Tue, 4 December 2007 13:10:05
Resistance levels: 1.4780/1.4850/1.4900
Support levels: 1.4700/1.4630/1.4580
EUR/USD has broken above 1.4710 first Resistance that results in a rapid move towards 1.4780-85 next Resistance area No important fundamental news tomorrow No change in our view. The uptrend remains intact for retest of 1.4900-10 highs and even 1.4965 record highs in longer term A break above the Resistance around 1.4780 is needed for resuming the uptrend towards 1.4850 and 1.4900. On the other side, first Support comes around 1.4700 ahead of 1.4630 yesterday bottom. .
Strategy-neutral.

FXDREAM GBP/USD
Date: Tue, 4 December 2007 13:10:04
Resistance levels: 2.0650/2.0700/2.0840
Support levels: 2.0520/2.0450/2.0420
GBP/USD has remained ranged around 2.0600 over the last trading sessions Unfortunately, our Long position has been stopped at 2.0620 earlier today with small 30 pip loss . On the upside, a break above 2.0680 first Resistance is needed for resuming the uptrend towards 2.0840 up target. In short term On the other side, as long as price is below 2.0680 ease back to 2.0550-20 area later today and even 2.0450 in mid term may be seen .
Strategy-neutral.

FXDREAM USD/JPY
Date: Tue, 4 December 2007 13:10:03
Resistance levels: 110.20/110.70/111.20
Support levels: 109.50/109.00/108.30
USD/JPY has broken 110.20 previous Support earlier today, falling further towards 109.50 stronger Support as it was suggested in our previous reports On downside, first important Support comes around 109.50 now . Below 109.50 causes reversal in the bias towards 109.00 and even 108.30-25 area On the upside,a break above 110.15-20 first Resistance area is needed for resuming the upmove towards 111.20 and 111.70.
Strategy-neutral.

FXDREAM USD/CHF
Date: Tue, 4 December 2007 13:10:02
Resistance levels: 1.1250/1.1320/1.1350
Support levels: 1.1150/1.1100/1.1070
USD/CHF has broken below 1.1250 down towards 1.1160-50 area as it was suggested in our previous report after failing to penetrate above 1.1320 previous high and key Resistance earlier today . Above opens territory for further upmove towards 1.1400 and 1.1450 in longer term First important Resistance comes at 1.1250. On downside, first Support comes around 1.1160 daily lows. Below may ease price further towards 1.1070 over the next trading session
Strategy-neutral.

FXDREAM EUR/JPY
Date: Tue, 4 December 2007 13:10:01
Resistance levels: 162.00/162.60/163.80
Support levels: 161.50/161.00/160.30
The Cross has fallen to 161.00Support and our next target over the last trading session. as it was suggested . The up target remains at 164.30 in longer term First immediate Resistance comes around 162.40 now . A break again above 162.40 is needed for resuming the upmove towards 163.80 highs . On downside, as long as price is below below 162.00 retest of 161.00 and even 160.30 is not ruled out
Strategy-neutral Read more...

Forex-Forecasting

This article provides insight into the two major methods of analysis used to forecast the behavior of the Forex market. Technical analysis and fundamental analysis differ greatly, but both can be useful forecast tools for the Forex trader. They have the same goal - to predict a price or movement. The technician studies the effect while the fundamentalist studies the cause of market movement. Many successful traders combine a mixture of both approaches for superior results.

Technical analysis

Technical analysis is a method of predicting price movements and future market trends by studying charts of past market action. Technical analysis is concerned with what has actually happened in the market, rather than what should happen and takes into account the price of instruments and the volume of trading, and creates charts from that data to use as the primary tool. One major advantage of technical analysis is that experienced analysts can follow many markets and market instruments simultaneously.
Technical analysis is built on three essential principles:

1. Market action discounts everything ! This means that the actual price is a reflection of everything that is known to the market that could affect it, for example, supply and demand, political factors and market sentiment. However, the pure technical analyst is only concerned with price movements, not with the reasons for any changes.

2. Prices move in trends Technical analysis is used to identify patterns of market behavior that have long been recognized as significant. For many given patterns there is a high probability that they will produce the expected results. Also, there are recognized patterns that repeat themselves on a consistent basis.

3. History repeats itself Forex chart patterns have been recognized and categorized for over 100 years and the manner in which many patterns are repeated leads to the conclusion that human psychology changes little over time.

Forex charts are based on market action involving price. There are five categories in Forex technical analysis theory:


Indicators (oscillators, e.g.: Relative Strength Index (RSI)
Number theory (Fibonacci numbers, Gann numbers)
Waves (Elliott wave theory)
Gaps (high-low, open-closing)
Trends (following moving average).

Some major technical analysis tools are described below:

Relative Strength Index (RSI):
The RSI measures the ratio of up-moves to down-moves and normalizes the calculation so that the index is expressed in a range of 0-100. If the RSI is 70 or greater, then the instrument is assumed to be overbought (a situation in which prices have risen more than market expectations). An RSI of 30 or less is taken as a signal that the instrument may be oversold (a situation in which prices have fallen more than the market expectations).

Stochastic oscillator:
This is used to indicate overbought/oversold conditions on a scale of 0-100%. The indicator is based on the observation that in a strong up trend, period closing prices tend to concentrate in the higher part of the period's range. Conversely, as prices fall in a strong down trend, closing prices tend to be near to the extreme low of the period range. Stochastic calculations produce two lines, %K and %D that are used to indicate overbought/oversold areas of a chart. Divergence between the stochastic lines and the price action of the underlying instrument gives a powerful trading signal.

Moving Average Convergence Divergence (MACD):
This indicator involves plotting two momentum lines. The MACD line is the difference between two exponential moving averages and the signal or trigger line, which is an exponential moving average of the difference. If the MACD and trigger lines cross, then this is taken as a signal that a change in the trend is likely.

Number theory:
Fibonacci numbers: The Fibonacci number sequence (1,1,2,3,5,8,13,21,34...) is constructed by adding the first two numbers to arrive at the third. The ratio of any number to the next larger number is 62%, which is a popular Fibonacci retracement number. The inverse of 62%, which is 38%, is also used as a Fibonacci retracement number.

Gann numbers:
W.D. Gann was a stock and a commodity trader working in the '50s who reputedly made over million in the markets. He made his fortune using methods that he developed for trading instruments based on relationships between price movement and time, known as time/price equivalents. There is no easy explanation for Gann's methods, but in essence he used angles in charts to determine support and resistance areas and predict the times of future trend changes. He also used lines in charts to predict support and resistance areas.

Waves
Elliott wave theory: The Elliott wave theory is an approach to market analysis that is based on repetitive wave patterns and the Fibonacci number sequence. An ideal Elliott wave patterns shows a five-wave advance followed by a three-wave decline.

Gaps
Gaps are spaces left on the bar chart where no trading has taken place. An up gap is formed when the lowest price on a trading day is higher than the highest high of the previous day. A down gap is formed when the highest price of the day is lower than the lowest price of the prior day. An up gap is usually a sign of market strength, while a down gap is a sign of market weakness. A breakaway gap is a price gap that forms on the completion of an important price pattern. It usually signals the beginning of an important price move. A runaway gap is a price gap that usually occurs around the mid-point of an important market trend. For that reason, it is also called a measuring gap. An exhaustion gap is a price gap that occurs at the end of an important trend and signals that the trend is ending.

Trends
A trend refers to the direction of prices. Rising peaks and troughs constitute an up trend; falling peaks and troughs constitute a downtrend that determines the steepness of the current trend. The breaking of a trend line usually signals a trend reversal. Horizontal peaks and troughs characterize a trading range.

Moving averages are used to smooth price information in order to confirm trends and support and resistance levels. They are also useful in deciding on a trading strategy, particularly in futures trading or a market with a strong up or down trend.

The most common technical tools:

Coppock Curve is an investment tool used in technical analysis for predicting bear market lows.

DMI (Directional Movement Indicator) is a popular technical indicator used to determine whether or not a currency pair is trending.

Unlike the fundamental analyst, the technical analyst is not much concerned with any of the "bigger picture" factors affecting the market, but concentrates on the activity of that instrument's market.

Fundamental analysis

Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental and other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. In practice, many market players use technical analysis in conjunction with fundamental analysis to determine their trading strategy. Fundamental analysis focuses on what ought to happen in a market. Factors involved in price analysis: Supply and demand, seasonal cycles, weather and government policy.
Fundamental analysis is a macro or strategic assessment of where a currency should be trading based on any criteria but the movement of the currency's price itself. These criteria often include the economic condition of the country that the currency represents, monetary policy, and other "fundamental" elements.

Many profitable trades are made moments prior to or shortly after major economic announcements.

by Easy Forex Read more...

FXDREAM EUR/USD
Date: Fri, 30 November 2007 13:10:05
Resistance levels: 1.4780/1.4850/1.4900/1.4965
Support levels: 1.4710/1.4680/14660
EUR/USD has retested 1.4780 first immediate Resistance earlier today Today focus will be on US Core PCE Index at 13:30 GMT The consensus is at 0.2% No change in our view. The uptrend remains intact for retest of 1.4900-10 highs and even 1.4965 record highs in mid term A break above first Resistance around 1.4780 is needed for resuming the uptrend towards 1.4850 and 1.4900. On the other side, further downmove towards first important Support at 1.4710 and even 1.4675 key one may be seen later today.
Strategy-neutral.

FXDREAM GBP/USD
Date: Fri, 30 November 2007 13:10:04
Resistance levels: 2.0700/2.0750/2.0840
Support levels: 2.0600/2.0520/2.0450
GBP/USD has found Resistance at 2.0700 earlier today after weak UK Consumer Confidence numbers Below 2.0600 key Support reverses the uptrend towards 2.0550-20 bottom area later today and even 2.0450 in mid term . First Support comes around 2.0600. On the upside, a break above 2.0700 again is needed for resuming the uptrend towards 2.0840 and 2.0880 up targets. Hold cautious Long for squeeze above 2.0700 later today
Holding GBP/USD Long at 2.0665,Stop-loss-2.0625,Take profit-2.0725( 2.0800)

FXDREAM USD/JPY
Date: Fri, 30 November 2007 13:10:03
Resistance levels: 111.00/111.70/112.00
Support levels: 110.20/109.50/109.00
USD/JPY has reached our target at 110.70 earlier today as it was suggested No change in our view. As long as price holds above 109.00 key Support further recovery towards 111.70 may be seen over the next trading sessions First Resistance comes at 111.00 . On downside, first minor Support comes around 110.20 ahead of 109.50 key one. Below 109.50 causes reversal towards 109.00 and even 108.30-25 area
Strategy-neutral.

FXDREAM USD/CHF
Date: Fri, 30 November 2007 13:10:02
Resistance levels: 1.1200/1.1230//1.1300
Support levels: 1.1100/1.1070/1.1020/1.0960
USD/CHF has retested 1.1200-30 strong Resistance area earlier today . Above 1.1200 first Resistance may lead price further towards 1.1300 later today and on Monday . On downside, below 1.1150 first immediate Support turns price back towards 1.1070 key one .In longer term, however, the bias remains bearish for retest of 109.60 and 108.90 bottoms.
Strategy-neutral.

FXDREAM EUR/JPY
Date: Fri, 30 November 2007 13:10:01
Resistance levels: 163.80/164.30/165.00
Support levels: 162.60/162.00/161.00
The Cross has risen beyond 163.60 previous high and our target earlier today after the break above 163.00 as it was suggested in our previous report.. The up target remains at 164.30 in mid term First Resistance comes at 163.80 daily highs . On downside, there is important Support around 162.00 now Below turns price back to 161.00 key one and even towards 160.00 and 159.60 in mid term First minor Support is at 162.60
Strategy-neutral.

Read more...

How I became a successful part time trader

Introduction

I am Joe Chalhoub, a computer engineer, Forex trader and strategy builder. I began trading currencies 3 years ago. The first 3 months trading were complete failure, I remember I lost all my money and I was about to quit, but I couldn't, I felt if I quit now maybe I am missing the chance of having my own business. So I stopped trading and began observing, studying, analyzing and practicing.

Observing: I began observing the market, what causes movement, reaction, ranging and trading.

Analyzing: I began working with technical and fundamental analysis; how each analysis can predict and redirect the market and how I can use them both for my own benefit. I will talk about these analyses in the following paragraph.

Reading: I bought Forex Trading Books and read them, books explaining different strategies and tactics used by experienced traders.

Practicing: I created free accounts and began trading virtually and each technique I invent I tried it and monitored its performance and validity.

After one year of studies, analysis and practicing trading techniques and after many failure and frustration I reached my own strategy and it is working very well and each month my profit is positive.

Implementation

I reached my targets and I built a successful strategy, but that's not enough; to make profit I must not miss any opportunity and forex market is full of opportunities because it is the most active market in the world, for that reason I must sit all time and watch and detect opportunities all day long from Monday to Friday.

How to resolve this problem, I can't sit and observe the market hours and hours, I have my career and my family, so I thought I must program my strategy, let the Information Technology do the hard work for me, and nobody is discipline as a software, so I created an artificial intelligent software which collects data from the market and implement my strategy on this data and detect opportunities 24/24.

This program analyses fundamental and technical data and generates forex signals which are forwarded automatically to my broker platform where the signals are executed automatically and forwarded also to my website members. All this is done without my interfering, I just run the program, it analyses and makes its decisions (Buying, Selling or stay aside).

How to succeed in Forex Trading

Five over hundred traders succeed in this business, what differentiate those five successful from the 95 others is one thing, it is the HARD WORK. Forex trading is not an easy business, and who tells you that he can make you rich in one night is one of those 95. Only one thing can make you a successful trader, HARD WORK, and nothing else. Don't rely on other traders or advisors to help you, rely and have confidence on yourself.

Don't begin trading quickly, the forex market will not go anywhere, it will stay forever, give yourself 6 to 12 months of studies, analysis, readings, practice and build your own strategy before begin real trading, it will take a lot of time and dedication but at the end you will reach your target.

Strategy

I will not reveal my full strategy but I will reveal some techniques I use which help traders in their trades.

My strategy follows the following tips and techniques:

1 - Discipline: Put criteria for your trades, watch the market and only trade when criteria are met, if they are not met do not trade. My program is the most disciplined trader, it takes care of all of this, it monitors the market and only trade if only criteria are met, and the second advantage of this is the elimination of the fear factor, it enters a trade when it sees it is good to enter and fear nothing.

2 - Money management: It's the main key for good trading, I exit all trades and stop trading for a specific day if I lost -60 pips, in the other hand I put stop loss for my trades if I reached +25 pips profit, in that case profit will not get under +25 pips and it has open target, and all I have to do is go out and have fun.

3 - No trades for now: The most important thing in trading is sometime not to trade, I take this decision after looking to my charts and see that there is not enough volatility or there is no enough reports will be released for today and it is better to wait until market is more volatile. I advise traders not to trade during the first days of the month, personally I begin trading at the first Friday of the month when the "NonFarm payroll" report will be released.

4 - Analysis: I use fundamental and technical analysis while trading. Fundamental defines the trend of the market and the technical analysis is used after the definition of the trend. I trade the news by analyzing programmatically the released data for a specific report and generate signals which are executed immediately on the trading platform and forwarded simultaneously to my members.

Fundamental and technical analysis must be used together, if one is used without the other this will lead to failure.

5 - Technical indicators: In the forex market there is a lot of indicators which are used by many traders. I use ADX, Bollinger Bands to identify trends and volatility; RSI to identify an over bought or sold and Moving Average to identify a signal. And the most important technique is FIBONACCI, I advise traders to implement this technique and use it to confirm trades.

Finally, I must say that Forex is not easy, and many times we feel that someone is doing a conspiracy on us to take our money, but the truth is nothing is impossible, and others successful traders are not more intelligent than us and they are not genius from other planet, the fact is the more you work the more you become closer to become good trader. Do not quit quickly because this business deserves hard work and dedication.

By Joe Chalhoub Read more...

Forex Forecasts - You Never Know What You Will Benefit From

Possible risks and profits to be made can always be predicted if traders would only have more accurate Forex forecast to base their trade and decisions upon. Forex forecasts are only one way of keeping up with the volatile Forex market. Success will depend the most in knowing what and who will affect the rate changes.

The Forex market has already been through a lot of ups and downs that even fortune tellers would have difficulty guessing what will be its next movement. Making a Forex forecast can be helpful but can also be too risky. Besides, doing it is not that easy also.

In Forex forecasts, nothing specific is given. The traders are not made to hope high and expect more. If you have seen or heard a Forex forecast, be sure to check on some projected rate fluctuations whenever and wherever possible so you would have an idea it the Forex forecast shows a likely possibility to be true or not.

Staying in touch and up-to-date with the latest news and happenings around the globe and information about the Forex currency can help traders determine when is the best time to buy, sell and stay away from a particular market. All these things are important in the performance of your trade. Take note of some Forex forecasts if only to serve as guide whenever you are in a situation that you find hard to make a decision upon.

How can one benefit from Forex forecasts?

There are some companies that are offering Forex forecast information as a subscription that traders can avail of. For those who do not have enough patience and browse for information in the internet, this Forex forecast information would be their alternative.

No one said that there is a 100% accuracy in these Forex forecasts. And no one told traders that they should also believe them 100%. If you want to have more degree of accuracy in the Forex forecast, you could always find one with the most accurate percentage rate.

You could look for something or someone that offers free information or a trail period for you to test the degree of their ability to give accurate forecast about the Forex market. There are also some sites that send out Forex forecast to emails that you may want to try out just so you will choice to choose from if you decide to avail the services of some of them.

Relying only on one Forex forecast is not the thing to do. You should at least have some more choices in the process of making an investment decision. Try to get more Forex forecast from sources that are rampant online and offline so you would not stick to just one.

The thing to remember is that your investments are your future and you have already worked too hard to just let it all down the drain. Do not put the future of your Forex trade into the hands of only person. Try to get several Forex forecast and choose the best one that you think has great ounces of accuracy up their sleeves.

Before putting the future of your investments into the hands of those offering Forex forecasts, make it a point to check out the latest that is happening in the Forex trading and see if the trend is likely to go with what the predictions are telling about.

If you think more about it, people doing Forex forecasts would not be out there giving bad forecasts because their reputation is the one at stake there. They surely would not want to ruin the image they have by giving false predictions about things that they know people will listen to, would they?

Like they say, traders should not believe all that is written in Forex forecasts. Some but not all. There are still decisions to be made that will be based upon the trader itself and no amount or accuracy of Forex forecasts can make that decision for them.

Just to be on the right side of things, always make sure and do your own research that will back up the Forex forecast you actually think is going to work. You never know what it will lead to...

by Kevin Anderson Read more...

Profitable Forex Strategies and Techniques

This article is mostly for people that already know what the Forex market is and at least know the basic concepts. If you have no clue about what this market is or you have never heard about it, I will give you a very brief explanation bellow.

Forex is the acronym for Foreign Exchange Market. This is the biggest and most liquid market of the entire world today. One to three trillion dollars exchange hands at Forex every day. That's a huge amount of money. No stock market exchange of any country come close to this.

This market is huge. It is a sea of money full of sharks and dangerous waters, but it is also the only market where you at least hypothetically can make $1,000,000 in two weeks starting with only $1,000.

I say hypothetically because what happens often is that people blindly gamble their money at Forex without knowing anything about it and they lose their shirt. That's why I say to you: be careful! This market is profitable, but you need to learn the basics well, do your homework and demo trade a lot.

Just remember that 95% of traders lose money, 5% make it and less than 1% become rich at Forex. The nice thing about this market is that you can make money without creating any product or service, selling anything, nor advertising. You just trade some cash and get paid depending on your knowledge and expertise.

This is the market where banks, transnational corporations and individual traders exchange one currency for another. I am talking about the spot Forex market. You can trade at huge leverage as much as 400 to 1, meaning that for every dollar that you have for trading you can trade 400. For example if you have $1,000 on your account you can trade as much as $400,000.

This is dangerous. Most experienced traders won't use such a high leverage. In the other hand, high leverage can be good if you learn how to use it in your favor. Anyway, that's enough for the basics. If you want to learn more about how this market emerged, its history and so, then read my other articles.

Now let's talk about the strategies and how some traders make money at Forex. Let's start by saying that what works for me may not necessary work for you. Trading currencies is risky. That's a fact. But ultimately I discovered a few strategies that could give novice traders a winning edge.

Trading Forex is not as easy as most people think. Today you may be earning a lot and tomorrow you are losing 40% of your starting capital. Novice traders often make the same mistakes over and over again. I will enumerate a few of them bellow.

1. Do not look for a holly grail of trading.

This is for people who are afraid to lose or are too greedy and want to get rich quick. Even when it seems so, The Forex Market is not the place to get rich quick. Yes, you can make a lot of money over time and yes you don't have to sell anything, nor create or advertise any products. Still you have to learn a whole lot about what makes this market tick and what moves the price of the currencies plus how to manage your money effectively so you don't lose your shirt.

Many novice traders spend a LOT of time searching a perfect strategy that will allow them to always win-win and never lose. They want to have guaranteed profits because they can't stand to lose and/or they want to make too much (millions) quick so they can retire fast and buy a mansion in a far distant beautiful tropical island. It doesn't happen.

Don't waist your time. A trading strategy that allows you to have guaranteed profits do not exist. Trading is very risky. That's why it is so profitable. Remember: "no risk, no reward." So, do not try to always win on every trade. It is simply not possible. There is no way to get rid of the fact of uncertainty. What I mean is that no matter how effective your trading strategy may be, sometimes it will fail and you have to be ready to face this fact.

By not trying to find a perfect strategy that turns you into a millionaire fast, you will just save a ton of your own time and efforts. It doesn't exist. If you find it, please don't tell me about it. First I won't believe you. Second I don't need it. You will find out bellow why I say that I won't need it.

2. Use technical analysis and fundamental analysis.

When I started trading I didn't believe in this. I wanted to find a strategy which consisted of money management alone (which I explain bellow). This is not good! Money management is important but you still need the other two. You define ("predict") where the market is heading to depending on how effective your technical and fundamental strategies are.

Mastering technical analysis is the ability to predict future price movements by analyzing past price data and graphical patterns. You get a graphic of certain currencies. Check the data that you observe and based on your knowledge of technical analysis you "predict" with certain degree of accuracy where the market is going.

Many brokers allow you to add technical indicators to the graphs while you are trading. You can try this on a demo account and see how well you are able to define the future price movement of the currencies you plan to trade. One of those brokers is www.oanda.com.

There are many technical indicators. I can't tell which one will be more effective for you. Every trader is different. This is something that you will have to discover by yourself. There is not a hidden secret or magic formula for trading Forex. It is what you do every minute when you are in front of the graphics and checking the news what really counts.

The secret is in your overall knowledge and your decisions. This comes with experience and practice. If you open an account with one of these online brokers you can trade on paper before you trade with real money, so you can learn and practice before you risk any capital.

Let me tell you about a few technical indicators that you can use. You can use the MACD (Moving average convergence divergence), the Bollinger Bands, Pivot Points, RSI, Stochastic, Fibonacci, EMA, Elliot Waves and many others. There are in fact many technical indicators but these are among the most widely known and used.

When you add technical indicators to the graphic the brokers software will automatically perform mathematical calculations to reveal interesting facts and patterns about the graphics that you can't readily see without said indicators. You can use the technical indicators to create your own technical systems.

These systems will never work 100% of the time, but if they work 70% - 80% it may be enough. That's because you can control your risks with money management techniques as I describe bellow.

To further increase your probability of winning and reduce your probability of losing on every trade you can use fundamental analysis. I think that most traders choose one or the other but many traders use both.

Fundamental analysis is to trade the news. What is going on with the countries's economies of the currencies that you are trading? What is the unemployment index? Did something suddenly happen that could drastically affect the price of the currencies?

Trading the news is another effective way to "predict" where the market is going. Many online brokers offer you a link with important financial news. For example www.oanda.com has this feature. You can also find financial news on the following websites:

a) www.bloomberg.com

b) www.businessweek.com

c) www.economist.com

d) money.cnn.com

e) markets.ft.com

f) www.reuters.com

g) www.fxstreet.com

3. Use money management strategies.

You need money management techniques. This is what makes you or breaks you. Put it this way, most traders invest far too much of their trading capital on every trade. It is as follows . . . "Expect to make too much and you will make too little, expect to make little and you will make a lot."

What does it mean? It means that if you try to make a fortune on every trade you will lose your shirt. If you expect to make a little on every trade and you compound your profits, you may make a lot of money over the long run.

The first rule of money management says that you should not risk more than 1% of the money that you have on your account. You control this risk with stop loss and limit orders. When you start trading this may seem as little profits specially if you start with little trading capital. In the other hand if you compound some or all of your profits you may increase your account exponentially over time.

The magic of compound interest is amazing! This is the way that most fortunes are created on the financial markets, little by little. If you gamble your money you may lose it fast.

Many traders do exactly the opposite. Imagine that you open an account with $5,000 and you enter a trade for $1,000. Let's say that the market moves against you and you lose those $1,000. Now you have $4,000 on your account. You think that the price for the currencies is too low, so it should recover. In fact you are pretty sure that it will come back.

Then you invest $1,500 to recover from the previous loss plus realize a $500 profit. The market moves again against you. It kept going in the same direction, something that you didn't expected. What happens? Now you have $2,500 on your account. That's 50% of your initial trading capital. It will be very hard for you to recover from that loss.

In the other hand, if you risk 1% of your money on every trade, you will have $4,900 on your account after that initial loss. It will be much easier for you to recover from those trades.

The second rule of money management is to expect always to receive more profits than the money that you risk to lose. This can be accomplished through limit and stop orders as well as trailing stops.

For example if you expect to make a 25 pips profits on every trade, then you put the stop order at 15 pips bellow or above your entry price. A better way to have a greater expectancy ratio is to use trailing stops as I describe above. A trailing stop allows you to cut the loses short and let your winners ride.

These are the basic techniques that a successful trader should use to generate consistent profits at the Forex Market. This is basic information, but I realize that many people out there don't even know what Forex is, so I didn't want to get into more complex strategies here. You will find information about complex and advanced Forex strategies on my website.

by Nathaniel Tabares Read more...

Why You Need To Develop Your Own Trading System

There are many trading systems and strategies out there. There are many free ones printed in trading articles, journals, books and on trading-related websites. You can buy them as software or you can subscribe to them periodically.

Novice traders say they do not have the time, the aptitude, the talent nor the brains to work out how to trade properly. They would rather purchase a program or subscribe to a trading system for hundreds - or in some cases - thousands of dollars. They say they do not have to do anything except be told what to buy, when to buy and how much of it you need to buy. Some ask me if this strategy or approach is advisable for trading the financial markets. To answer this question, I am then forced to consider the advantages and disadvantages of using such an approach to trading.

There are reasons why a trader would use a system or strategy that someone else developed and tested:

1. It is easy. A novice trader does not need to study how the market works and how he interacts with that market. He does not need to educate himself: he does not need to bother with books and seminars. He does not need to test the system, since the seller has already done that for him and reported promising hypothetical or actual results.

2. A novice trader hopes to get a trading system at a 'bargain' price: sometimes even for free.

Hazards of trading a system or strategy developed and tested by someone else are the following:

1. Faulty Systems

There are many faulty systems out there. They may be faulty because their assumptions and their mechanisms may no longer be true, accurate or valid. As a novice trader, how can you distinguish between the good systems and the bad systems if you don't know how trading systems are built?

2. Discipline and confidence

All systems have drawdown periods. Some good systems may not make money for six months or an entire year. Even if it was a good system, can you continue to follow it even if it gives you a loss after a loss after a loss? How can you follow it if you do not have confidence in it? How can you be confident if you do not know the ins and outs of the system and if you have not tested it yourself?

I do not believe that people would blindly follow a system even if they were told that it would bring them riches. I can give someone a trading system, I can supply him with exceptional hypothetical or actual results and still, he would not be able to follow it.

I remember giving my dad a fully-mechanical trading system I developed. I told him a few simple rules and I told him not to question them. All he had to do was to follow them. We both traded it for two months, I grew my small account by roughly 50% (it happened to be a good two months), but he was losing. He wondered why. I asked to see his trading records. When I looked at his trading records, I found that he kept disobeying the rules. When I asked him why he disobeyed them, he wanted to improve the results after it had a couple of losing trades. He was trying to improve the results. According to him, the system asked him to do what he thought was not right during certain market conditions, so he did not follow it. I found simple errors too, including opening trades at market price instead of waiting for buy and sell stop orders at support and resistance levels to get triggered. I also asked that he executes trades at the close, but oftentimes he traded two hours before or after the close at his discretion. There were many more rules he breached. He is a smart man: a former civil engineer and now a manager for a big organisation. Why could he not follow instructions? It is simple. He did not know the reasons behind the rules I had set and so he did not appreciate them. His money was on the line and after a series of losses, he lost faith in the system easier than I did because he did not develop and test it himself.

To overcome the hazards above, I see no way except for a trader to learn how to develop his own trading methodology. This is the only way a trader can know if a particular system or strategy is good or not.

Once a trader learns how to develop systems and strategies, he can then be better equipped to test them as well. By this point he might even find that he is better off using the system he created, because it becomes increasingly difficult to find another system more suited to his profit objectives while operating within his risk tolerance levels. It is likely that once he develops this level of competence, he will simply acquire other systems only to dissect them, grab the parts he likes and add them to his own system. To me, the irony is that for a trader to know which system to purchase, he must first learn how to create a system. And after knowing how to create a system, he will no longer have the need to buy one.

In conclusion then, I would have to say that if you are not inclined to learn how to develop your own trading methodology, then perhaps you should consider giving your money for someone else to invest. Give it to someone who is trading a system that he developed and tested himself because he is more likely to have the confidence and courage to follow his own set of rules.

by Marquez Comelab Read more...

Your Guide to Learning a Forex Trading System

There are a great number of people in America that are interested in investing in order to make a tidy profit. There are many ways to invest and many ways to make profits by investing. One method that has been gaining in popularity is that of the Forex trading system. If you are unsure of what this is, let me explain. Forex stands for foreign exchange. A Forex trading system is defined as the simultaneous exchange of one countries currency for another countries currency. If you would like more information, please let this be your guide to learning a Forex trading system.

The Forex trading system involves trading some of the world's most major currencies. These are: the dollar, yen, British pound, Swiss franc, and the Euro. The way the exchange rates of these types of currencies change is based on economic growth. An example: Sometimes the Dollar is worth more than the British pound because the United States was in a period of economic growth while Britain was on the decline. This can be because the unemployment rate was declining in the United States, while on the rise in Britain. Another example: the export rate is up in Asia so the yen is worth more than the Swiss franc where the export rate is down. Economic growth changes daily, so the value of these currencies changes daily. You need to learn to watch for these changes in order to make any money with the Forex trading system.

The Forex Trading system is much larger than that of all U.S. stock markets combined. In fact, the Forex Trading system makes about 1.9 trillion dollars each year. This is 30 times larger than the U.S. stock markets. Also, Forex trading is done throughout the entire world, so it is available 24 hours a day, unlike the U.S. stock markets.

You can learn the Forex trading system for free online at various websites. Many websites offer a free demo account and free Forex trading System training. This way you can practice everything you learn for free, without investing or losing any real money. Then when you get a feel for the Forex trading system, many websites offer a free 30 day trial or free trades to new investors. It is best to utilize some of this free training and the free demo accounts before you start investing your own money.

Now that you understand the Forex trading system a little better, you may wish to get out there and start investing. There is a lot of money to be made, or lost. Be careful and make sure you get the proper training first. With the right frame of mind, you may be able to make some healthy sums of cash through the Forex trading system!

by Morgan Hamilton Read more...

Trying Forex Trading with the Best Strategy and Approach

With the day things are today, more people are getting interested in investing their money to make them grow faster. The problem is, not too many people are willing to take the risk of investing it because of the risks, so some of them just let their money rut in banks. Not that there's anything wrong with banks, it's just that they have low rates and the money takes a long time to grow. If you want real money, you have to have the guts to risk it. Making money needs money; risks are always involved if you want to have money fast and big.

One of the largest arenas wherein you can invest your savings is the Forex. Forex trading has been around for decades already and is regarded as the largest financial forum in the whole world with an estimated 3.1 trillion dollars of volume everyday. The Forex (Foreign Exchange) trading is open 24 hours and never sleeps. Transactions are done all over the world via telephones and computers, money exchanges hand in the number of millions in just mere seconds. The Forex Trading is composed of thousands of banks and individual Forex trading companies that monitors development all over the world, developments that may influence the value of their currency. Forex trading deals with the exchange of currencies from different countries. The idea is to determine the rise and fall of the value of a certain currency and trade when it is deemed advisable.

For small Forex trading transactions, managed accounts are the ideal, they are for the cautious because they have the least risky participation. Here you entrust your investments along with others to a reliable, honest and ethical seasoned Forex brokers. These Forex brokers use their extensive knowledge and lengthy experience and use their strategy to make your money grow, for a fee of course.

With the rise of the internet, Forex trading can be done in a click of the mouse. Money travels through space and wires all the time. The computers have done a big help in the growth of Forex trading, transactions can now be done anytime anywhere. Since somebody is up at a given time everyday anywhere in the world, you will never lose someone to trade with.

There are two basic and fundamental ways to analyze and evaluate foreign exchange trading. There is the technical analysis and the fundamental analysis. There is a huge difference between the two. In Fundamental analysis, Forex analyzers and brokers watch out for causes to market fluctuation. These causes may include the political condition of the country, their laws and legislations, financial policies, their growth rate and other factors as well. Technical analysis of Forex trading includes graphs, charts and other method of measuring past data to see the indication of the rise and fall of currencies. They get all the information they need and use them to calculate and forecast the possible direction of a certain currency.

There are lots to learn about Forex trading; even the seasoned broker learns something new everyday. Forex trading has huge returns in an instant if you catch the right moment and transaction. But always remember there is till the risk, Forex trading can be quite a gamble, especially if your forecast is wrong. Before investing your money in any firm, try to investigate about its record and history in Forex trading.

by Sara Jenkins Read more...

Forex Trading: The Perfect Forex Trading System

Trading the Forex market has became very popular in the last few years. But how difficult is it to achieve success in the Forex trading arena? Or let me rephrase this question, how many traders achieve consistent profitable results trading the Forex market? Unfortunately very few, only 5% of traders achieve this goal. One of the main reasons of this is because Forex traders focus in the wrong information to make their trading decisions and totally forget about the most important factor: Price behavior.

Most Forex trading systems are made off technical indicators (a moving average (MA) crossover, overbought/oversold conditions in an oscillator, etc.) But what are technical indicators? They are just a series of data points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair. In other words, it is a chart of price plotted in a different way that helps us see other aspects of price.

There is an important implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as "the MA crossover made the price go up," but it happened the other way around, the MA crossover signal occurred because the price went up. Where I'm trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision made.

Trading decisions based on technical indicators without taking price action into consideration will give us less accurate results. For example, again a long signal generated by a MA crossover as the market approaches an important resistance level. If the price suddenly starts to bounce back off that important level there is no point on taking this signal, price action is telling us the market doesn't want to go up. Most of the time, under this circumstances, the market will continue to fall down, disregarding the MA crossover.

Don't get me wrong here, technical indicators are a very important aspect of trading. They help us see certain conditions that are otherwise difficult to see by watching pure price action. But when it comes to pull the trigger, price action incorporation into our Forex trading system will definitely put the odds in our favor, it will generate higher probability trades.

So, how to create a perfect Forex trading system?

First of all, you need to make sure your trading system fits your trading personality; otherwise you will find it hard to follow it. Every trader has different needs and goals, thus there is no system that perfectly fits all traders. You need to make your own research on various trading styles and technical indicators until you find a concept that perfectly works for you. Make sure you know the nature of whatever technical indicator used.

Secondly, incorporate price action into your system. So you only take long signals if the price behavior tells you the market wants to go up, and short signals if the market gives you indication that it will go down.

Third, and most importantly, you need to have the discipline to follow your Forex trading system rigorously. Try it first on a demo account, then move on to a small account and finally when feeling comfortably and being consistent profitable apply your system in a regular account.

by Raul Lopez Read more...

Choosing A Forex Strategy

Technical analysis and fundamental analysis are the two basic areas of strategy in the FOREX market which is the exact same as in the equity markets. However, technical analysis is by far the most common strategy that is used by individual FOREX traders. Here is a brief overview of both forms of analysis and how they directly apply to forex trading:

Fundamental Analysis

If you think it's hard enough to value one company, you should try valuing a whole country instead. Fundamental analysis in the forex market is often an extremely difficult one, and it's usually used only as a means to predict long-term trends. However it is important to mention that some traders do trade short term strictly on news releases. There are a lot of different fundamental indicators of the currency values released at many different times. Here are a few of them to get you started:

* Non-farm Payrolls

* Purchasing Managers Index (PMI)

* Consumer Price Index (CPI)

* Retail Sales

* Durable Goods

You need to know that these reports are not the only fundamental factors that you have to watch. There are also quite a variety of meetings where you can get some quotes and commentary that can affect markets just as much as any report. These meetings are often brought out to discuss any interest rates, inflation, and other issues that have the ability to affect currency values.

Even changes in how things are worded when addressing certain issues such as the Federal Reserve chairman's comments on interest rates; can cause a volatile market. Two important meetings that you have to watch out for are the Federal Open Market Committee and Humphrey Hawkins Hearings.

Just by reading the reports and examining the commentary, it can help FOREX fundamental analysts to get a better understanding of any and all long-term market trends and also to allow short-term traders to be able to profit from extraordinary happenings. If you do decide to follow a fundamental strategy, you will want to be sure to keep an economic calendar handy at all times so you know when these reports are released. Your broker may also be able to provide you with real-time access to this kind of information.

Technical Analysis

Just like their counterparts in the equity markets, technical analysts of the FOREX trading market analyze price trends. The only real difference between technical analysis in FOREX and technical analysis in equities is the time frame that is involved in that FOREX markets are open 24 hours a day.

Because of this, some forms of technical analysis that factor in time have to be modified so that they can work with the 24 hour FOREX market. Some of the most common forms of technical analysis used in FOREX are:

* The Elliott Waves

* Fibonacci studies

* Parabolic SAR

* Pivot points

A lot of technical analysts have a tendency to combine technical studies to make more accurate predictions on your behalf. (The most common method for them is combining the Fibonacci studies with Elliott Waves.) Others prefer to create trading systems in an effort to repeatedly locate similar buying and selling conditions.

Choosing Your Strategy

Most successful traders will develop a strategy and perfect it over a specific period of time. Some people will focus on one particular study or calculation, while still some others use broad spectrum analysis as a means of determining their trades. Most experts would likely suggest that you try using a combination of both fundamental and technical analysis, with which you can make long-term projections and also determine entry and exit points. Of course, in the end, it is the individual trader who has to decide what works best for him.

When you are ready to get started in the FOREX market, you should open a demo account and paper trade so that you can practice until you can make a consistent profit. Many people who fail have a tendency to jump into the FOREX market and quickly lose a lot of money because of a lack of experience. It is important to take your time and learn to trade properly before you start committing capital.

You also need to be ale to trade without emotion. You can't keep track of all stop-loss points if you don't have the ability to execute them on time. You must always set your stop-loss and take-profit points to execute automatically, and don't change them unless you absolutely have to. Make your decisions and stick to them. Otherwise you will drive yourself and your brokers crazy.

You should also realize that you need to follow the trends. If you go against the trend, you are just messing with your money because the FOREX market tends to trend more often than anything else and you will have a higher chance of success in trading with the trend.

The FOREX market is the largest market in the world, and every day people are becoming increasingly interested in it. But before you begin trading, make sure your broker meets certain criteria, and take the time to find a trading strategy that works for you.

by Giles Windholm Read more...

How To Loose Everything - The Worst Forex Trading Strategy Ever That You Might Be Using

You may be wondering, `Why would David Jenyns write about the worst Forex trading strategy around?`

There are a couple of reasons:

First, to warn you about the worst Forex trading strategy, because you really don`t want to end up using this system.

Second, because once you know the worst possible Forex trading strategy, the one that is designed to maximize your losses over the long run, then you can reverse it to craft a strategy which does the exact opposite.

With what you learn from the worst Forex trading strategy, you will be able to create a system that will produce some tremendous long-term gains. The worst Forex trading strategy I`m referring to, which is simply the worst Forex trading strategy I have ever encountered, is known as averaging down. This horrifying Forex trading strategy is the process of buying more shares that you had previously acquired, as the price drops.

Traders often purchase shares this way in an effort to reduce their initial entry price.

Only bad investors average down by buying shares of a sinking assests to decrease their overall average price per share. This Forex trading strategy is hardly ever effective, and is often like throwing good money after bad. It also magnifies a trader`s loss if the share keeps dropping. Remember, just because a share is cheap now that doesn`t mean it`s not going to get any cheaper. However, let`s examine how this devastating Forex trading strategy works. Say you bought one thousand shares at $40.

The novice investor may not have a stop loss in place, and the share price falls to $30 dollars. Here comes the stupidity of this Forex trading strategy - to average down the novice trader might by another thousand shares at $30 to lower the average cost per share that he`d already purchased. So, his average cost per share would now be $35.

Unfortunately, the share price may fall even further, and the novice trader will again buy more shares to reduce the average cost per share. They end up buying more and more into a share that`s losing their money.

Now, imagine this Forex trading strategy being applied to a portfolio of assets. In the end, all the capital will automatically be allocated to the worse performing assets in the portfolio while the best performing assets are sold off. The result is, at best, a disastrous underperformance versus the market.

If a trader uses an averaging down system and uses margins, their losses will be magnified even further. The biggest problem with this Forex trading strategy is that a trader`s gains are cut short, and the losers are left to run. My advice is - never average down. The process of buying a share, watching it fall, and then throwing more money at it in the hopes that you`ll either get back to break even or make a bigger killing is one of the most misguided pieces of advice on Wall Street. Never be faced with a situation where you`ll ask yourself, Should I risk even more than I originally intended in a desperate attempt to lower my cost and save my butt?`

Instead, design a simple, robust system with good money management rules. I can practically guarantee the results will be better than averaging down.

by David Jenyns Read more...

FOREX Trading Strategies

The world of trading and investment can be as frustrating as it can be rewarding! And Forex (Foreign Exchange) is no exception - often described as risky, profitable and complicated.

Forex is the largest trading market in the world.

Forex is the worldwide market for buying and selling currencies. These markets were developed to cater for the supply and demand of different currencies by governments, companies and individuals - for international trade and assisting importers and exporters.

Therefore those who trade in this market include consumers, businesses, investors, speculators and the banking industry.

Different countries use different currencies - which vary in their values against each other. Forex trading invovles the buying and selling of two currencies - trading pairs - you are selling one and buying another eg you may use the US dollar to purchase British pounds - if the supply of the pound lessens - it will cost more dollars to buy pounds - the Forex trader hopes to sell their pounds at a higher price than the purchase price.

A speculator in Forex is someone who accepts the possibility of adverse exchange-rate movements in the hope of making a profit from favourable movements in currency.

As a speculator you should always start trading with a small amount and have a trading system - which tells you when to get in and out of the market. It is a favourite option for currency traders as you can trade the Forex market 24 hours per day and the transaction costs are minimal.

This market - because of its sheer size - is hard to be manipulated - which stocks can be - it is more likely to be influenced by global news or events. Hence, the opportunity for 'insider trading' is eliminated.

However - beware -Forex brokers estimate that 90% of traders lose their money; 5% break even and only 5% achieve profitable results!

by Gay Redmile Read more...

FOREX Education - Thinking Of Buying FOREX Advice? Read This First

There is a huge amount of FOREX Education you can buy but before you buy it read this, as in excess of 90% of it will ensure you lose.

So you ensure you get the right FOREX Education follow the guidelines below.

1. Never buy a day trading system!

Most novice traders are enticed by the theory of making money everyday, with low risk and high rewards, but this is not the reality of day trading.

The reality of day trading is:

A quick wipe out of equity - why?

Quite simply, all short term moves are random and using support and resistance as day traders do is destined to failure.

If you don't believe me try this simple test when buying any FOREX Education from a vendor:

Ask for the real time track record of profits and you won't get one from a day trader.

At best you will get a hypothetical track record, but that's done in hindsight, knowing the closing prices and if we know the closing prices its not hard to make money.

If you want to make money don't day trade!

2. Real time profits

A real time track record is an essential requirement on ANY FOREX education you buy, not just day trading systems.

The fact however is, most FOREX education is sold by failed brokers, or people who have never traded in their lives.

If these people have not had the confidence to trade their own money on their own system why should you?

3. Understand the FOREX Education

Even if you are lucky enough to find a system that does have a track record of real FX Profits you need to be mindful of the following:

You need to fully understand the method and not follow it blindly.

If you don't understand why a method works you won't have confidence to follow it through inevitable periods of losses.

Not only must you understand it to follow it with discipline, you must also check it fits your trading personality.

Some traders can take big drawdowns or losses, other traders find them hard to take, so pick a system with a risk to reward you can handle emotionally.

4. The best FOREX education

There is a huge amount of FOREX education and FOREX advice free on the web, so use it.

In other articles we have shown how to build a system that makes profits from free info and it's a lot easier to learn FOREX Trading this way than many people think.

You can also get some great FOREX education at nominal cost from your local bookstore this FOREX advice is from:

Traders who don't just talk the talk - they have walked the walk and made money.

Great books to look at are Jack Schwager's excellent Market Wizards and New Market Wizards - which interview some of the best traders of all time.

Trader Vic - Victor Sperandeo a great all round book and there are many more.

Rather than buying a e-book from someone without a track record, get your FOREX Education free on the net and get some classics from legendary traders.

Most of the courses and systems on the web are over priced, don't work and you can frankly, do better on your own with the above advice.

by Sacha Tarkovsky Read more...

Secrets To Potentially Making Money In The Forex Markets

How would you like to be able to potentially make money trading currencies in the Forex markets? Better yet, how would you like to be able to potentially do this within strict risk control parameters? Even better yet, how would you like to potentially do it with a minimum of effort on your part? I'm talking about only10 minutes a week. Well, I am here to tell you a few key principles or secrets to potentially make it happen.

Secret #1

The Forex markets are heavily advertised as being a great way to make money, which is very misleading. The unwary would-be Forex trader is led to believe all she has to do is open a Forex account to gain access to one of the many excellent Forex trading platforms, begin trading and then become rich in no time. So what's the secret? The Forex market is a highly liquid, potentially profitable market to trade, sure enough, but only if you have a winning edge methodology that you can apply to these markets. Without such a methodology, the hapless trader will quickly lose money trading the Forex as they would any market.

Secret #2

The Forex markets are heavily advertised as commission-free. True, but unlike the futures market, entering and exiting positions in the Forex markets is done by buying at the high end of a rather wide bid/ask spread and selling at the low end. So the difference in the spread is your cost of doing business. This cost may be acceptable for swing and long term traders, but may not be acceptable for day traders. So if your goal is to make money, you may not wan to day trade the Forex markets.

Secret #3

While swing trading could be potentially profitable trading the Forex markets, there is potentially greater opportunity trading the long term trends. Currencies have always moved in long sweeping mega-trends that potentially offer low risk entry points and the potential opportunity to ride a long money making trend (sometimes for several months). The following wisdom from legendary stock trader Jesse Livermore is equally applicable to the Forex markets:

"And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying and selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine - that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance."

Secret #4

Potentially the best way to trade for the longer term is to trade off of the weekly charts, thus avoiding the day-to-day volatility that wreak havoc on one's account or at a minimum shake you out of your position prematurely and potentially missing a big money move altogether. By definition, then, a potential winning edge methodology based on a weekly chart only requires analysis once a week after the futures markets close for the week each Friday. You then simply update your chart, determine the following week's entry, trailing stop loss and profit target orders, which should be placed before the futures market opens on Monday. A clarification is in order here, even though we are trading the Forex market, we can use the weekly futures markets charts for determining exit and entry orders that can then be executed in the Forex market. And these same signals, by the way, are equally executable in the futures markets. It becomes a matter of which market platform you prefer to trade the currencies.

It should be clear from this discussion that there is no magic to trading the Forex or currency futures markets. The magic is in the potential winning edge methodology that you apply to these markets that makes the money.

by Bill Poulos Read more...